Caring for the Planet Press Metal Aluminium Holdings Berhad SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 136 Our Climate Change Strategy is built on four (4) key pillars: Pillar 1: Strengthening Business Resiliency Over Climate Risk Implementation of targeted actions to mitigate climate risks, enhance resilience, and ensure our reduction targets are met despite changing environmental conditions. Pillar 2: Reducing Operational Carbon Footprint Contribute to the achievement of our Climate Targets by reducing operational GHG emissions. Pillar 3: Low-Carbon Product Produce low-carbon aluminium products with a lower environmental footprint compared to conventional aluminium, supporting a reduction in overall GHG emissions, which helps our buyers meet their climate goals. Our GEM™ aluminium, a low-carbon aluminium, emits a carbon footprint of less than 4.0 metric tonnes of CO2e emissions per metric tonne of aluminium, covering Scope 1 and 2 GHG emissions. Its product carbon footprint is significantly lower than the industry average, measured within a cradle-to-gate boundary. Additionally, our innovative CYCAL™ billet integrates GEM™ with high recycled aluminium content, offering a balance of quality and low-carbon emissions. Pillar 4: Reducing Carbon Footprint Across Value Chain Source raw materials with a lower carbon footprint through supplier engagement, contributing to GHG reduction across our supply chain. By using supplier-specific Life Cycle Assessment (“LCA”) data for alumina, we reduce GHG emissions by providing more accurate data compared to average methods with higher GHG emissions factors. Each pillar has short- and long-term strategies identified under each, as detailed below. Short-Term Strategy • Align our climate action approach with the ISSB framework, building on the principles of the TCFD. • Conduct climate scenario analysis and climate modelling. Long-Term Strategy • Efforts to mitigate and adapt to climate impact. • Integrate climate change risks into the enterprise risk management processes. Progress • Adopted the “outside-in” approach as prescribed by TCFD, entailing the identification of climate change impacts on our business model. • Undertook climate risk assessment and evaluated the business impact of our climate risks through scenario analysis. • Integrated climate change adaptation actions into our climate strategy and incorporated climate risks into our business decision-making process. • Integrated climate risk assessment and adaptation planning into our risk management and business continuity planning. • Developed a dedicated Climate-related Risk Register that incorporates the identified physical and transition risks. • Established internal carbon price (shadow pricing), enabling the assessment of climate impacts associated with projects. The shadow price will be enable analysis of GHG emissions on returns, evaluate associated risks, and support strategic planning. Short-Term Strategy • Review and align our GHG-related targets and metrics with reference to TCFD Framework. • Conduct Scope 1 and 2 GHG emissions inventory. Long-Term Strategy • Implement a GHG abatement and offset programme. Progress • Purchased renewable energy certificates to increase our deployment of low-carbon energy. • Expanded solar capacity to 14.7 MW in 2024 with an additional 1.2 MW from PMBA Nilai 2. • In progress to install 6.3 MW of rooftop solar systems across downstream entities (PMI, PMBA Klang, PMBA Nilai 1), targeted for completion in 2025. • Converted an additional seven (7) diesel forklifts to EVs in 2024, bringing the total to 34, supporting our transition to low-carbon mobility. • Identified operational efficiency improvement opportunities while consistently tracking our performance and initiatives against our KPIs. • Entered into collaboration agreement with XJTU for CCU research and development. Pillar 1 Strengthening Business Resiliency Over Climate Risk Pillar 2 Reducing Operational Carbon Footprint
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